A modified Grewe approach has been employed for total synthesis of (plus or minus)-2-hydroxy-4,5-epoxy-6-keto-17-methylmorphinan, an important substance for further defining the role of oxygen functionally on pharmacological activity in the morphinan series. Deoxygenation of this substance by standard methods will provide (plus)-3-deoxydihydromorphinone which we prepared earlier in chiral form from natural morphine. Selective oxidation of this substance at the 3-position with chemical and microbial agents is being studied as a potential route to codeine and other opium alkaloids.